While it doesn’t rank as the most exciting avenue in the market, investing in the companies listed on the venerableDow Jones Industrial Averagecould be one of the smartest moves, particularly because they’re some of the world’s most proven businesses. Still, you don’t want to just acquire anything. If you’re limited to just $250, you need to narrow down your list of Dow stocks to buy.
Given that the market has taken a turn for the volatile, it’s best to go with companies that can weather a recessionary storm. Here, analysts aren’t just being worrywarts. With the consumer price index indicating that inflation has run higher than anticipated, the Federal Reserve israising benchmark interest ratesuntil circumstances get under control. Therefore, Dow stocks to buy must take this dynamic into account.
To be clear, economic headwinds present speculative opportunities as many shares are now discounted from their highs. On the other hand, there are some names that might benefit from a downturn. We’ll tackle both topics for the below Dow stocks to buy if you have $250 right now.
Coca-Cola (KO)
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Just for pure marketing smarts, you might want to addCoca-Cola(NYSE:KO) shares to your list of Dow stocks to buy. Recently, the soft-drink giant made headlines when itannounced a partnershipwithBrown-Forman(NYSE:BF.A, NYSE:BF.B) to combine the Coke and Jack Daniel’s Tennessee Whiskey brands into one alcoholic beverage.
Interestingly, Coca-Cola has been aggressively expanding its alcohol drink options, per aCNN Businessreport. Cynically, some evidence indicates that as theeconomy goes down, drinking goes up. So, the iconic beverage firm is in the right business as far as I can tell.
Seriously, though, Coca-Cola’s traditional business has historically been pegged as arecession-resistant investment. Fundamentally, part of the reason stems from the “cheap respite” thesis. We all need a break during hard times and a sugary drink can provide the endorphins necessary to get us going.
Also, consumers may skimp out on expensive lattes and switch to Coke products, thus benefitting the underlying company.
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